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Thursday, 9 July 2009

India: Delhi’s Maulana spoke on Islamic banking in World meet

New Delhi: Delhi based Islamic scholar, Umair Ilyasi enthralled the World Religion meet recently concluded in Astana in Kazakhstan recently when he spoke very eloquently on Islamic banking and as to how it is good for the world.

Umair Ilaysi, who is also the Imam of Kasturba Gandhi Marg mosque, said that the credit crunch situation due to the economic meltdown has created the need for a newapproach to finance and banking in the world. Islamic financial system is the answer to whole issue. After returning from the meet, he told Mynews.com that he deliberately choose the subject for his speech. It was well-received by all thee delegates.

Explaining the major strengths of Islamic banking, Maulana Umair said that interest-based lending secured by collateral securities sufficiently absolves bankers from their clients''' risks. This could scarcely be the case should the requirement of Islamic Banking be implemented, where commercial banks would be required to share the profits as well as the losses of their clients. In such circumstances, banks would be more careful when choosing which deals to finance.

This risk-sharing finance eliminates conflicts and ensures greater stability in economic activity, since there would be no sub-prime crises where the value of a bank's liability is determined by the performance of its assets.

Maulana Umair, who is also the Secretary General of All India Association of Imam, said that risk-sharing techniques are not prevalent in modern finance practice. The reverse is usually the case in Islamic Banking. Under the practice of Islamic Banking, however, Islamic banks are allowed to provide their clients with loans, through a good combination of commodity trades.

It may be recalled that there were three delegations from India participated in the meet. One each from Hindu, Muslim and Parsi religion. Speaking there as head of the Hindu delegation, Eminent Hindu scholar and thinker, Dr.S.K.Somaiya said that other than minor incidents in such a large country, everybody live peacefully. India is a shining example for entire world.

Dr.S.K.Somaiya made a very impassioned appeal that it is high time that that we should focus on action. We should chalk out an action plan so that people belonging to different religions can respect and know about other religions.